Trading Wednesday - Reuters Update - Sri Lanka bourse gains on bargain hunting; rupee steady

Sri Lanka stocks end up 0.7-pct
Dec 07, 2011 (LBO) - Sri Lankan closed higher Wednesday, swinging back over the 6,000 point mark although trading was thin, brokers said.

The main All Share Price Index rose 0.67 percent (40.14 points) to 6,028.79, while the more liquid Milanka index rose 1.81 percent (93.39 points) to close at 5,249.78.

Turnover was 832 million rupees, according to stock exchange provisional figures.

Index heavyweight John Keells Holdings rose 8.10 rupees to close at 172.10.

Over 9.9 million shares of Dialog Axiata changed hands with the stock closing up 10 cents at 7.90 rupees.

The sole crossing or off-market private deal for the day was 200,000 Distilleries Company shares at 150 rupees each. It closed at 150, up 30 cents.

Lanka Ashok Leyland was the highest gainer, closing at 3,300 rupees, up 800 rupees or 32 percent, with just one trade of 100 shares.

Orient Garments was the most actively traded stock, accounting for the second highes turnover and closing at 36.80 rupees, down 3.50, with 2.77 million shares done. It hit a day's high of 45 rupees.
Dunamis Capital was also actively traded, closing at 17.70 rupees, up 1.30, with 1.8 million shares changing hands, and hitting a high of 19.20.

Expolanka Holdings was also actively traded, closing at 8.70 rupees, down 10 cents, with 1.5 million shares traded and hitting a high of 8.90.

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Wed Dec 7, 2011 12:10pm GMT
* Retail buying in blue chips amid thin trade
* Foreign investors buy 30,000 Keells shares
* Rupee flat; cenbank sells $12 mln to defend

COLOMBO, Dec 7 (Reuters) - Sri Lanka's stock market climbed on Wednesday in thin trade as investors cautiously bought blue chips that have lost value, while many investors held off in anticipation of possible regulatory changes.

The island nation's main share index rose 0.67 percent or 40.14 points to 6,028.79, from its lowest since Nov. 28. Retail buyers snapped up Dialog Axiata PLC and Sampath Bank PLC, while foreign investors bought market heavyweight John Keells Holdings PLC.

Keells jumped 4.94 percent to 172.10 rupees as foreign investors bought 30,308 shares, while Dialog ended 1.28 percent firmer at 7.90 rupees and Sampath gained 0.5 percent to 202 rupees.

But the bourse saw a net foreign outflow of 70.9 million rupees on Wednesday with offshore investors selling 500,200 shares in Lanka Walltile PLC, which ended flat at 92.10 rupees. Foreign investors have sold 18.1 billion thus far in 2011, and a record 26.4 billion in 2010.

The day's turnover was 831.2 million Sri Lanka rupees ($7.30 million), well below last year's average of 2.4 billion and this year's 2.4 billion.

Total volume was 35.5 million shares, against a five-day average of 58.9 million. The 30-day and 90-day average trading volumes were 57.2 million and 100.6 million. Last year's daily average was 67.9 million.

The bourse has fallen 11.13 percent since Oct. 1. It is Asia's 13th-best performer with a year-to-date loss of 9.15 percent after being at the top until June. It gave Asia's best returns in 2009 and 2010.

On Wednesday, the bourse was in neutral territory with the 14-day relative strength index at 39.6, above the lower neutral range of 30. Losers outnumbered gainers by 96 to 88, Thomson Reuters data showed.

The rupee closed flat at 113.89/90 rupees a dollar for an eleventh straight day. The central bank on Wednesday sold around $12 million to defend the currency, dealers said, extending its total dollar sales to around $260 million since the 3 percent devaluation on Nov. 22.

On Wednesday the central bank raised its benchmark 91-day T-bill rate by 8 basis points to a 20-month high.

FACTORS TO WATCH:
- Investors' moods after the devaluation
- The potential for imported inflation post-devaluation
- The reserve cost of defending the new rupee rate

DATA Colombo Stock Exchange:
Stock Market Volume (Shares)
Current Volume-----------Average Volume 30 Days
35,470,550----------------------------57,239,581

Yield and Price of Sri Lanka's sovereign bonds:
Maturing year----Tenure------Amount-----------Reuters yield
2012-------------5-yr--------$500 mln----------6.606-6.309
2014-------------5-yr--------$500 mln----------5.457-5.117
2020------------10-yr--------$1,000 mln--------6.1001-5.9537
2021------------10-yr--------$1,000 mln--------6.2625 -6.1235

($1 = 113.9150 Sri Lanka rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bryson Hull)